Manufacturing Activity on the Upswing 

Some welcome news to start the New Year from the Institute of Supply Management (ISM).  

Manufacturing grew at an expanded rate in December, according to the nation’s supply executives surveyed in ISM’s latest “Manufacturing ISM Report on Business.”

Here’s what Bradley Holcomb, ISM chair had to say when he issued the report on Jan. 3: "The PMI (Purchasing Managers Index) registered 53.9 percent, an increase of 1.2 percentage points from November's reading of 52.7 percent, indicating expansion in the manufacturing sector for the 29th consecutive month. (Ed. note: Any reading greater than 50 indicates improvement.)

“The New Orders Index increased 0.9 percentage point from November to 57.6 percent, reflecting the third consecutive month of growth after three months of contraction.

“Prices of raw materials continued to decrease for the third consecutive month, with the Prices Index registering 47.5 percent, which is 2.5 percentage points higher than the November reading of 45 percent.

“Manufacturing is finishing out the year on a positive note, with new orders, production and employment all growing in December at faster rates than in November, and with an optimistic view toward the beginning of 2012 as reflected by the panel in this month's survey."

The report includes a detailed breakdown on performance by industry.  Also included in the ISM press release are quotes from some of the survey’s respondents – some forecasting a strong 2012 (Miscellaneous Manufacturing); others with gloomier prognostications (Wood Products).